The SEC Drops Lawsuit Against Robinhood Crypto
The U.S. Securities and Exchange Commission (SEC) has made the decision to drop its lawsuit against Robinhood Crypto, the cryptocurrency arm of the popular financial services company. This comes after the agency conducted an investigation into the company’s operations.
SEC Decides Against Enforcement Action
Following the investigation, the SEC has announced that it will not be pursuing any enforcement action against Robinhood Crypto. This news comes as a relief to the company and its CEO, Dan Gallagher.
Robinhood CEO Reacts to SEC’s Decision
Robinhood CEO Dan Gallagher has publicly praised the SEC’s choice to drop the probe into the company. He believes that the investigation should never have been initiated in the first place and is pleased with the outcome.
The decision has had a positive impact on Robinhood’s stock, with shares of HOOD rising by nearly 2% in pre-market trading after experiencing an 8% drop on Friday.
SEC’s Initial Notice to Robinhood
Earlier this year, Robinhood received a Wells notice from the SEC in May 2024, indicating that the agency was considering taking legal action against the company. However, the recent decision to drop the lawsuit has put an end to any potential enforcement actions.